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Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Automotive & MobilityCompletion of Value-Up Project (Wave 2) for Certified Pre-Owned Vehicle Business


The Wave 1 project laid the groundwork by establishing a post-sales profitability management system, including optimal resale price determination and channel allocation. In Wave 2, the focus shifted to developing a preemptive profitability management system that could predict and mitigate losses. Additionally, the reconditioning process was enhanced to ensure not only high throughput but also flexibility to accommodate vehicle-specific needs. Over the course of four months, Looxent implemented the following initiatives:

A. Profitability Forecasting and Management System

  • Designed profitability prediction logic and models based on contract and delivery data.
  • Developed tools to analyze profitability variances across return and allocation stages.
  • Enhanced allocation logic to optimize contribution margins.

B. Profit Management System for Inventory Purchases

  • Established logic and tools to guide purchase price evaluation.
  • Defined processes for profitability review prior to purchase decisions.

C. Reconditioning Process Optimization

  • Standardized costs, labor requirements, and frequency for each reconditioning task.
  • Set differentiated reconditioning levels by intake channel.
  • Introduced monitoring systems to track improvements and operational efficiency.

Project Outcomes

The Wave 2 Value-Up initiative enabled the client to achieve significant operational and financial improvements:

  1. Profitability Management:

    • The client now has the capability to forecast and manage profitability at every stage of the forward-purchase lifecycle. This includes monitoring vehicle value changes post-contract and delivery and optimizing profitability through enhanced allocation logic.
  2. Reconditioning Efficiency:

    • Adjustments in reconditioning levels based on vehicle condition led to a 68% increase in production output compared to the start of the year.
    • Operational inefficiencies, such as process bottlenecks and logistics losses, were reduced by 40%, resulting in a highly competitive reconditioning process.

Next Steps: Wave 3 Execution

Building on the success of Wave 2, the client will now focus on optimizing profitability across all forward-purchase stages and enhancing operational competitiveness in adjacent services, such as logistics. Over the next four months, Looxent will lead the Wave 3 project, targeting effective CRM strategies to ensure realized profitability and robust logistics service capabilities. This will further solidify the client’s position as a leader in the certified pre-owned vehicle market.




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T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.